ISLAMABAD – Air travel in Pakistan is becoming more affordable, but not for everyone. The federal government reduced taxes on international business class tickets by up to Rs50,000, while the move lowers travel costs for premium passengers who already spend heavily on airfares, it offers little direct benefit to the majority of travelers flying economy class.
The revised tax rates came into effect on July 1, 2026, offering substantial financial relief to passengers flying abroad. Under the new policy, travelers flying business class to the US, Canada, and South America will benefit from tax reductions of up to Rs50,000 per ticket.
Passengers traveling to Europe, the UK, Australia, Japan, Russia, and Hong Kong will receive tax relief of up to Rs40,000, making long-haul premium travel significantly more affordable.
Business class travelers heading to the UAE, Saudi Arabia, and other regional destinations will enjoy tax cuts of up to Rs25,000 on their tickets.
The move is expected to lower overall cost of international business class travel and provide direct financial relief to thousands of passengers, particularly frequent business travelers and overseas Pakistanis. The tax reductions are among the notable travel-related measures introduced in the 2026–27 federal budget and are aimed at easing the financial burden of overseas travel.
Budget 2026-27: Proposed Tax Slabs for Salaried Class in Pakistan
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